MPs reject freeze of licence fee

MPs have rejected by two to one Conservative proposals to "freeze" the TV licence fee for a year.

In April the annual fee for a colour TV licence went up by £3 to £142.50 - a 2% rise, linked to inflation - under the terms of a six-year settlement.

The Tories said a freeze was needed next year if the BBC were to maintain public support in tough economic times.

Culture secretary Andy Burnham told the Commons: "Now is not the time to be ripping up the licence fee settlement."

'Never over-funded'

He added that the prospect of year-on-year funding for the BBC would "undermine" its work and "take away its creativity and stability".

Mr Burnham also said that while the BBC provided "good value" for licence fee payers, it should be "adequately but never over-funded".

Shadow culture secretary Jeremy Hunt said: "The BBC too needs to maintain its bond of trust with the British people.

"That means understanding that when times are tough, you don't just pocket the money allocated to you in happier times - you listen to people's concerns and you respond to the very changed economic circumstances of 2009."

The licence fee should only be used to enable the BBC to deliver its public services

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